The euro traded just below the $1.18 mark as US President Donald Trump’s new 10% global tariff came into force, intensifying trade tensions and weighing on investor sentiment. The measure, enacted via an executive order signed last Friday, followed only hours after the US Supreme Court blocked several of the administration’s earlier import duties.
According to Bloomberg, White House officials are preparing a formal directive that could raise the tariff rate to 15%. Trump also cautioned that countries attempting to “play games” with existing trade agreements could face even higher duties. His warning came after the European Parliament moved to halt progress on a trade accord with Washington, pending greater policy clarity from US authorities.
Market participants are now closely watching upcoming inflation data from Germany, France, and Spain for clearer guidance on how the euro’s recent strength might affect price dynamics and influence the European Central Bank’s future policy decisions.
